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ROI (Return on Investment) Calculator

Calculate Return on Investment percentage, annualized gain, and net profit for any financial venture.

How to Calculate Return on Investment (ROI) & Profitability

Return on Investment evaluates the efficiency and profitability of an investment relative to its initial cost.

  • Basic ROI (%) = [(Net Profit) ÷ (Cost of Investment)] × 100
  • Net Profit = Final Investment Value - Initial Investment Cost
  • Annualized ROI (%) = [(1 + Basic ROI)^(1 ÷ Years) - 1] × 100

Frequently Asked Questions

What is Annualized ROI?

Annualized ROI measures the average geometric annual growth rate of an investment, allowing fair comparison across different time periods.

Can ROI be negative?

Yes, a negative ROI indicates that the investment incurred a net financial loss relative to its initial outlay.

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ROI (Return on Investment) Calculator · Finance · return · investment · profit · business